IRAN THREATENS HORMUZ BAN OVER TRUMP FROZEN FUNDS PLAN

Iran rejected a proposal by US President Donald Trump to compensate ships damaged in the Gulf using frozen Iranian assets. An IRGC spokesperson, Ebrahim Zolfaghari, warned that any vessel accepting such compensation would be banned from transiting the Strait of Hormuz. Iran's Khatam al-Anbiya Central Headquarters, which oversees the unified command of the country's armed forces, stated that the restrictions would apply to all companies and countries that accepted Trump's proposal and used Iran's blocked assets.

Iran characterised Trump's proposal as both "incendiary" and an "illegal action". The plan would have drawn on Tehran's frozen funds held abroad to pay for damage to ships and cargo in the waterway, where Iran has previously caused maritime incidents. The Strait of Hormuz is one of the world's most strategically important shipping routes, through which millions of barrels of oil transit daily.

The threat represents a significant escalation in tensions between Iran and the United States. Iran's willingness to restrict transit through the strait signals potential disruption to global shipping and energy markets. The Islamic Republic has previously threatened to close or restrict access to the Hormuz Strait during periods of heightened US-Iran tensions.